Observed Signal · Sep 23, 2026 · Marketing Campaign · Source: Modern Retail · Impact: 3/5 · Sentiment: Positive
Spot & Tango invests $3.5M in brand marketing after zero spend
Spot & Tango, a digitally native pet food brand, is shifting strategy to invest $3.5 million in top-of-funnel marketing this year, after spending effectively $0 on such efforts last year. The campaign, created with agency Day Job, includes subway ads, billboards, CTV, and events, aiming to build brand awareness. The company, which is profitable and growing over 70% year-over-year, plans to increase this spend to $5-7 million next year. The shift reflects a broader trend of brands investing more in brand awareness, as noted by Gartner analyst Greg Carlucci.
The news highlights a significant strategic shift by a DTC brand investing in upper-funnel marketing, reflecting industry trends and providing insights into brand marketing effectiveness.
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Key Takeaways & Evidence Grounding
- Spot & Tango is investing $3.5 million in top-of-funnel marketing in 2026, up from $0 in 2025.
- The new campaign, 'Extend your dog's life,' includes ads in over 570 subway cars and billboards in NYC.
- The company is profitable with a $200 million annualized revenue run rate and over 70% year-over-year growth.
- Spot & Tango's in-house brand PupGum exceeded $10 million in annual recurring revenue in seven months.
- The company plans to spend $5-7 million on top-of-funnel marketing next year.
Connected Companies & Entities
1 Entity mapped“Greg Carlucci, senior director analyst at Gartner, told Modern Retail......”
Ontology Mapping & Concepts
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Two DTC Startups Balance Paid and Organic Marketing
Ernesta, a made-to-order rug brand founded in 2022, and Tractive, a pet-tracker company founded in 2012, described different approaches to paid and organic marketing during a May 21 panel at The Lead moderated by Modern Retail. Ernesta—selling custom rugs priced roughly $300 to over $2,000 and planning about 15 stores—has leaned into organic tactics such as creator partnerships with interior designers and in-store events to build long-term brand demand in a competitive, infrequently purchased category. Tractive sells a GPS device and separate subscription ($5–$10/month), focuses on bottom-of-funnel conversions, finds linear TV and Meta ads effective, and reports low subscription conversion from TikTok despite strong device sales. Both brands emphasize consumer education and plan experiments with Substack creators and YouTube content to expand awareness.
Verndale Launches AI Visibility & Content Supply Chain Services
Verndale, a digital consultancy, has introduced new services to help marketers measure and improve their brand's visibility in AI-generated answers. As AI assistants like ChatGPT and Google's AI Overviews increasingly influence research and buying decisions, brands need to know whether they are mentioned, recommended, and correctly described in these responses. Verndale's services include an AI Visibility assessment that tests real audience questions across major AI platforms, identifying gaps in brand mentions and citations. They also offer an AI-Ready Content Supply Chain Assessment to optimize content operations for AI-era discoverability. The company cites research from SparkToro showing 68% of Google searches end without a click, and Gartner reporting 45% of B2B buyers use generative AI for purchase research. A case study with Quinnipiac University demonstrated significant improvements in content optimization and AI readiness through governed agent workflows.
OK Future's AI 'Pressure Cooker' Campaign for Goodwipes
Former MullenLowe U.S. CEO Frank Cartagena launched creative shop OK Future to test generative AI's potential for a small agency. Their first project, a spoof of OpenAI's Astra ad for personal hygiene brand Goodwipes, was produced in four days using AI tools like ArtCraft, Seedance, and OpenAI's Astra model, cutting projected production costs from $700,000. The campaign, 'Meet Asstra,' gained over 1.5 million views on Reddit. However, Cartagena described the pace as 'unsustainable' and a 'pressure cooker,' with team members working around the clock and even threatening to quit. Goodwipes' SVP of Marketing, Meredith Diehn, emphasized trust in Cartagena and the value of experimenting with AI. The article highlights the growing use of AI in creative production, with 73% of marketers using GenAI for visual content and Gartner forecasting AI software spending to reach $981 billion by 2029.
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